Tuesday, November 11, 2008


---------- Forwarded message ----------
From: Bharat Gajjar
Date: Tue, Nov 11, 2008 at 2:36 PM
Subject: Fw: HUMAN EVENTS Article: China's Path to World Power
To: Undisclosed-Recipient

----- Original Message -----
From: Arjuna Marc Weisburg
To: bgajjar@comcast.net
Sent: Tuesday, November 11, 2008 1:58 PM
Subject: HUMAN EVENTS Article: China's Path to World Power
Arjuna Marc Weisburg has sent you an article from HUMAN EVENTS ONLINE
with the following personal message:


China's Path to World Power
by Patrick J. Buchanan

For decades, before a heedless congregation, some of us have preached
the old Hamiltonian gospel.

Great nations do not have trade partners. They have trade competitors
and rivals. Trade surpluses are superior to trade deficits. Tariffs on
foreign goods are preferable to taxes on U.S. producers.
Manufacturing, not finance, is the muscle of the nation.

Economic independence is vital to political independence.

Following Hamiltonian precepts, the United States grew from 13 rural
and agricultural colonies into the greatest industrial power in all
history, producing 42 percent of the world's manufactured goods. We
were the awe and envy of mankind, the self-sufficient republic, maker
of half of the armaments produced by all the nations in World War II.

That is the America we grew up in -- that has now vanished.

Chrysler, Ford, perhaps GM, may be dying. Manufacturing has sunk to 10
percent of U.S. employment, a level unseen since before the Civil War.
Europeans and Asians are to assemble in Washington this week to impose
upon the United States a New World Economic Order like the one we
imposed on them at Bretton Woods in 1944.

Such are the fruits of free-trade ideology.

Across the Pacific, a nation that studied how America rose, and
watched as America declined, chose a different path. China adopted and
pursued a China First policy of economic nationalism.

In July, Charles McMillion of MBG Services testified to the U.S-China
Economic and Security Review Commission on China's progress.

Beijing began its astonishing rise by devaluing its currency 45
percent in 1994, slashing the prices of exports in half and making
imports twice as expensive. As America threw open her market and
invited China to come in and capture it, China had erected a Great
Wall around her own.

Results: China's worldwide trade surplus in manufactures, $31 billion
in 2001, hit $401 billion in 2007, a 1,300 percent increase, and may
reach $500 billion in 2008. China has shoved Germany aside to become
the world's greatest exporter and now leads the world in the export of
manufactured goods to Japan and the European Union, as well as the
United States.

While running trade deficits with Asian neighbors like Taiwan, to tie
them politically to Beijing, China is running record trade surpluses
with the European Union and the United States, making America and the
West as dependent upon China for our manufactures as we are on OPEC
for our oil.

Chinese auto production has quintupled since 2001. She now produces
more cars than Germany and may exceed the United States in 2009. While
Chinese auto exports are still heavily in parts, finished cars are
coming soon to a dealer near you. The Chinese will likely run the
sword through the last standing member of America's Big Three.

Before 2004, China's manufacturing trade surplus with America was
largely in textiles and apparel. But, since then, China's rocketing
trade surplus in electronics, computers and parts has far exceeded her
surplus in textiles and apparel.

China's trade surplus in computers and components rose from $8.1
billion in 2001 to $73.5 billion in 2007. In cellular phones and
parts, her worldwide trade surplus grew from $3 billion in 2003 to $50
billion in 2007, and may reach $60 billion by year's end.

China still imports commercial airliners. But she now has a large and
growing trade surplus in airplane parts. This follows the pattern in
textiles, computers and autos. First, the Chinese learn by assembling
parts in factories in China. Then, China begins to produce the parts.
Then, China produces the finished products and goes out to capture the
world market, while protecting her own by keeping her currency cheap.

On items the Commerce Department categorizes as advanced technology
products, America began running a trade deficit for the first time
early in the George W. Bush years. China now exports to us four times
as much, in dollar value, in ATP items as we sell to Beijing.

As America mothballs the shuttle, relying on Russian rockets to get
our astronauts back up to a space station we built, China is putting
men into space and heading for the moon.

Since America ushered China into the World Trade Organization in 2002,
Beijing's growth rate has been four times that of the United States,
accelerating from an average 10 percent of gross domestic product to
12 percent in 2007.

With her immense trade surpluses, China's reserves have surged from
$200 billion in 2002 to $2 trillion. Awash in dollars, Beijing now
waits patiently, writes McMillion, to cherry-pick the crown jewels of
America's industrial empire -- "patents, talents, natural resources,
brands" -- at fire-sale prices in the global crash.

As America plunges into recession and our industry hollows out, while
China is still growing at 9 percent, as the 20th century's greatest
creditor nation now borrows from Beijing to pay for booster shots for
its sick economy, may we hear once again the Bush-Clinton refrain
about how the terrible danger we all face is from "protectionism."

Read more articles like this at HUMAN EVENTS ONLINE!


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